Now Canada Coal says it’s examining the potential for thermal coal on its Arctic coal licenses “as a solution for the current energy crisis in Nunavut.”

Canada Coal is “actively evaluating various fuel power generation technologies including coal to liquids and coal water slurry,” Jonker said.

Coal water slurry can be used instead of oil or gas in any size of heating and power station, such as Nunavut’s diesel generating power plants. The presence of water in the slurry reduces harmful emissions produced by coal generation power plants.

Coal water slurry fuel is a heavy liquid fuel that is produced by mixing grounded coal, water and chemical additives, according to a description from a company called Sino Clean Energy Inc. which sells cold water products.

Coal water slurry can be stored, pumped and burned as a substitute for oil or gas in properly modified furnaces or boilers. It burns cleaner than coal, and is free of coal dust that pollutes the atmosphere.

This past summer, Canada Coal focused its attention on the western Fosheim Peninsula, one of six coal license areas owned by the company, about 36 kilometres east of Eureka and at the heart of its “Nunavut Coal Project.”

“These discoveries help to confirm the historic coal target size assessments throughout its Arctic coal properties. The next phase of exploration will include an upcoming drill program to further define our thermal coal deposits and to explore for metallurgical coal deposits at deeper levels,” Jonker said.

Metallurgical or “met” coal, is coveted for use in steel-making.

A March 2012 story in Mining Weekly Online said there is currently a scarcity of met coal worldwide and that, “people are scouring the world for new deposits.”

“As our exploration programs progress, we are committed to close cooperation with local communities and transparent communication with all stakeholders,” Jonker said.